Approximations of Two-Attribute Utility Functions
PENNSYLVANIA STATE UNIV UNIVERSITY PARK COLL OF BUSINESS ADMINISTRATION
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This report considers the assessment of von Neumann-Morgenstern utility functions u defined on two attributes from the viewpoint of mathematical approximation theory. It focuses on approximations v of u that can be written as vx,y f1xg1y ... fmxgmy where the fi andor gi are based on single-attribute conditional utility functions. The paper does not rely on independence axioms that enable ux,y to be expressed in simplified forms when they are valid.
- Theoretical Mathematics